The Green Finance Institute, an organization funded by the government and the City of London Corporation, has recently demonstrated its support for the Labour Party by providing £100,000 worth of services. Led by former Barclays banker Rhian-Mari Thomas, the institute aims to raise funds for net zero projects and has been advising shadow chancellor Rachel Reeves and shadow energy secretary Ed Miliband.
The donations of support from the Green Finance Institute to Labour were valued at £99,000 and were revealed last month. This “action tank” has agreed to assist Labour in creating a National Wealth Fund, as indicated in the MPs’ register of interests. This collaboration suggests that the Green Finance Institute may be playing a role in shaping Labour’s forthcoming election manifesto.
The involvement of the Green Finance Institute with the Labour Party has drawn attention, particularly from backbench Tory MPs, due to the organization’s government-backed roots. The institute’s close ties with the government are prominently featured on its website, making its support for an opposition party a topic of interest.
The partnership with Labour also indicates potential future policy changes if the party were to come to power. The Green Finance Institute has been a vocal advocate for heat pumps and electric cars, with a goal of driving private funding towards green projects.
Established in 2019 with funding from both the government and the City of London Corporation, the Green Finance Institute was intended to enhance the competitiveness of the UK financial services sector and strengthen the country’s global green finance brand, according to Lord Hammond, the former chancellor who spearheaded its creation.
Headed by Rhian-Mari Thomas, the institute has been pushing for initiatives aligned with net zero targets. This has included advocating for legislation, regulation, and judicial decisions to adhere to net zero targets, with ideas similar to the Inflation Reduction Act in the United States, which has provided substantial subsidies to green enterprises.
The Green Finance Institute’s backing of Labour’s proposed National Wealth Fund, spearheaded by Rachel Reeves, comes as the shadow chancellor plans to invest £7.3 billion of taxpayer money into the fund to stimulate job creation in a zero-carbon economy. Investments will include projects related to carbon capture and storage, floating offshore wind farms, and green steel, with the aim of creating employment opportunities for various professionals in the green energy sector.
This support from the Green Finance Institute follows a donation of £10,000 to the shadow chancellor from a climate sceptic earlier this year. A spokesman for the institute clarified that the support provided to Labour is not a monetary donation, but rather services-in-kind, and that no taxpayer money is being used for this purpose.
In response, a Labour Party spokesman acknowledged engaging with independent organizations as part of their policy development work and assured that all engagements are conducted in accordance with the rules.
The collaboration between the Green Finance Institute and the Labour Party showcases the significance of private and public sector partnerships in driving sustainable and green initiatives. As the issue of climate change continues to gain prominence on the global stage, such partnerships are essential in driving the UK towards a net zero future.